Consumer borrowing increases in June

Consumer borrowing picked up in June, the first monthly gain during the pandemic, according to Federal Reserve data released Friday. U.S. consumer credit had fallen three months in a row.

Total consumer spending increased $8.9 billion. That’s an annual growth rate of 2.6% and follows a 4.2% decline in May and an 18.7% collapse in April.

For the second quarter, consumer credit fell at a 6.7% rate.

Revolving credit, like credit cards, fell in June at a 2.8% annual rate. This is the fourth consecutive monthly decline. Nonrevolving credit, typically auto and student loans, rose 4.3%. Nonrevolving credit is much less volatile than credit-card use.